House
Study
Bill
716
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
AUDITOR
OF
STATE
BILL)
A
BILL
FOR
An
Act
exempting
from
state
income
tax
income
received
by
a
1
certified
public
accountant
performing
certain
audits
or
2
examinations
of
governmental
subdivisions,
and
including
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5362DP
(2)
90
jm/jh
S.F.
_____
H.F.
_____
Section
1.
Section
11.6,
subsection
2,
Code
2024,
is
amended
1
to
read
as
follows:
2
2.
a.
A
governmental
subdivision
contracting
with
certified
3
public
accountants
shall
do
so
in
a
reasonable
manner
on
the
4
basis
of
competence
and
qualification
for
the
services
required
5
and
for
a
fair
and
reasonable
price
utilizing
procedures
which
6
include
a
written
request
for
proposals.
7
b.
Income
received
by
a
certified
public
accountant
8
performing
an
audit
or
examination
of
a
governmental
9
subdivision
pursuant
to
this
section
shall
be
exempt
from
10
taxation
under
section
422.7
or
422.33,
as
applicable.
11
Sec.
2.
Section
422.7,
Code
2024,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
44.
Subtract,
to
the
extent
included,
14
income
received
by
a
certified
public
accountant
performing
an
15
audit
or
examination
of
a
governmental
subdivision
pursuant
to
16
section
11.6.
17
Sec.
3.
Section
422.35,
Code
2024,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
14.
Subtract,
to
the
extent
included,
20
income
received
by
a
certified
public
accountant
performing
an
21
audit
or
examination
of
a
governmental
subdivision
pursuant
to
22
section
11.6.
23
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
24
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
25
or
after
that
date.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
exempts
from
state
income
tax
under
Code
sections
30
422.7
(individual)
and
422.35
(corporate),
as
applicable,
31
income
received
by
a
certified
public
accountant
performing
an
32
audit
or
examination
of
a
governmental
subdivision
under
Code
33
section
11.6.
34
The
bill
applies
retroactively
to
tax
years
beginning
on
or
35
-1-
LSB
5362DP
(2)
90
jm/jh
1/
2
S.F.
_____
H.F.
_____
after
January
1,
2024.
1
-2-
LSB
5362DP
(2)
90
jm/jh
2/
2